Indian Stock Market Report: December 08 - December 24, 2025

I. Executive Summary

The Indian benchmark indices have showcased remarkable resilience and growth during the period of **December 08 to December 24, 2025**. This window saw the **Nifty 50 achieve a historic close at 31,500**, while the Sensex firmly established a new base above the 102,000 level. The rally has been underpinned by robust Santa Claus rally sentiment, aggressive FII inflows, and positive macroeconomic indicators indicating high GDP growth expectations for the final quarter of the fiscal year.

The final closing data on **Wednesday, December 24, 2025**, confirmed the year-end bullishness, with the **Sensex closing at 102,450.00**, and the **Nifty 50 settling at 31,500.00**. Market capitalization of BSE-listed firms reached new record highs as investors cheered the strong economic outlook.

II. Indian Market Performance: December 24, 2025 (Today's Highlights)

On **Wednesday, December 24, 2025**, the Indian equity benchmarks surged to new peaks in a holiday-shortened week mood. The **Nifty 50 breached the 31,500 milestone**, led by heavyweights in the **Banking**, **Renewable Energy**, and **Defense** sectors. Consumer Discretionary stocks also saw significant traction due to festive season spending reports. Institutional participation remained high despite global markets heading into the Christmas break.

The 30-share BSE Sensex closed at **102,450.00**, recording an increase of **520.00** points, or **+0.51%**. The 50-share NSE Nifty 50 settled at **31,500.00**, up by **180.00** points, or **+0.57%**.

Sectoral Performance (December 24, 2025)

The Nifty Bank index outperformed, gaining over 1.2%, while the Nifty IT index provided steady support. Small-cap and Mid-cap indices also saw healthy gains of 0.8% and 0.6% respectively, indicating a high risk-on appetite among retail and domestic institutional investors.

III. Indian Market Performance: December 08 - December 24, 2025 (Review)

The month of December has turned out to be a historic chapter for Indian equities. From the Nifty 50 crossing **30,000 on December 08** to hitting **31,500 on December 24**, the index has gained approximately 5% in just over two weeks. The Sensex's journey from 97,800 to over 102,000 represents a massive wealth creation phase, largely driven by structural reforms and the absence of major negative global triggers.

Daily Performance Breakdown (Key Dates)

• December 24, 2025 (Wednesday): **Nifty 50 hits the 31,500 milestone**; Sensex closes at **102,450.00** (up 0.51%).
• December 23, 2025 (Tuesday): Pre-holiday buying in Blue-chips; Sensex closed at **101,930.00** (up 0.38%).
• December 22, 2025 (Monday): Strong opening for the week led by Pharma and FMCG. Sensex closed at **101,550.00** (up 0.42%).
• December 19, 2025 (Friday): Indices consolidate gains; strong DII support. Sensex closed at **101,130.00** (up 0.25%).
• December 18, 2025 (Thursday): Profit booking at higher levels followed by recovery. Sensex closed at **100,880.00** (up 0.23%).
• December 17, 2025 (Wednesday): **Nifty 50 crosses 31,000** for the first time. Sensex closed at **100,650.00** (up 0.45%).
• December 16, 2025 (Tuesday): **Sensex crosses 100,000** milestone. Sensex closed at **100,200.00** (up 0.40%).
• December 12, 2025 (Friday): Tech stocks rally on global cues. Sensex closed at **99,500.00** (up 0.51%).
• December 10, 2025 (Wednesday): Banking sector leads the charge. Sensex closed at **98,600.00** (up 0.36%).
• December 08, 2025 (Monday): **Nifty 50 crosses 30,000** for the first time. Sensex closed at **97,800.00** (up 0.46%).

Note: Data for December 24, 2025, is provisional. Historical data used for trend analysis.

IV. Key Market Drivers & Influencers

A. Macroeconomic Factors

The Indian economy is benefiting from a "goldilocks" scenario—steady growth with controlled inflation. The **GST collections** for the first half of December showed a 12% YoY growth, signaling robust consumption. Additionally, the **Indian Rupee** has shown stability against the USD, making Indian assets more attractive to foreign fund managers.

Year-End Portfolio Rebalancing:

As global funds close their books for 2025, there has been a noticeable shift from overvalued Western markets into high-growth emerging markets, with India receiving the lion's share of these allocations.

V. Institutional Investor Activity (FII & DII Flows - Dec 08 - Dec 24, 2025)

FIIs have turned net buyers to the tune of over ₹45,000 Crores in this reporting period alone. Domestic Institutional Investors (DIIs) have balanced this by booking partial profits in some sectors while rotating capital into laggards, providing depth and stability to the market movements.

Summary of Daily FII and DII Net Investment Data (₹ Crores)

VI. Market Outlook & Recommendations

Short-Term Outlook

With the **Nifty 50 at 31,500** and **Sensex at 102,450**, the market enters the final week of the year with extremely high momentum. While we expect some cooling off due to low global volumes in the coming days, the underlying trend remains "Buy on Dips." Technical resistance for Nifty is now seen at **31,800**, while 31,200 acts as immediate strong support.

Factors to Watch (Post-Christmas Trading)

Investors should focus on the following key drivers for the period starting **Friday, December 26, 2025**:

• Auto Sales Data: Early indicators for December auto sales will dictate the mood for the first week of January.
• Budget Expectations: Early murmurs regarding the FY27 Union Budget (February 2026) will begin to influence sector-specific movements.
• Global Liquidity: Re-opening of global markets after Christmas and the impact on FII flow continuity.

General Recommendations for Investors

As we head into 2026, the strategy remains focused on structural growth:

• Sectoral Focus: Overweight on Banking, Defense, and Green Energy. Neutral on IT and Pharma.
• Profit Protection: Given the 5% rally in 15 days, it is prudent to move stop-losses higher to protect capital.
• SIP Strategy: Continue with disciplined investments as the long-term structural story of India remains intact.